Ripple’s Lawsuit Appeal Nears End: $50M Fine and SEC’s Crypto Shift Explained

Ripple's lawsuit appeal nears resolution with a $50M fine, as both parties seek settlement and SEC's new chair aims to reshape crypto regulation in the U.S.

Yahya Raza
April 12, 2025
12:30 am

Yahya Raza

Syed Yahya Raza Sherzai is a crypto news writer known for his in-depth analysis and timely reporting on blockchain technology, cryptocurrency markets, and decentralized finance (DeFi). With a keen eye for emerging trends and regulatory developments, Sherzai has established himself as a trusted voice in the cryptocurrency space.

Ripple and SEC seek to pause litigation, signaling a nearing settlement, with an agreement-in-principle in place.
SEC accused Ripple of selling XRP as an unregistered security, sparking a legal battle that’s captivated crypto markets.
A new SEC chair, Paul Atkins, takes a moderate stance on crypto regulation, aiming for clarity in digital asset laws.

Ripple Labs and the U.S. SEC have jointly requested the Second Circuit Court of Appeals to halt the ongoing litigation. Both sides indicate that they are in the final stages of the ongoing negotiations. The motion was filed on April 10 and posted by James Filan, an attorney on X.

#XRPCommunity #SECGov v. #Ripple #XRP The parties have filed a joint motion to hold the appeal in abeyance based on the parties’ agreement to settle. The settlement is awaiting Commission approval. No brief will be filed on April 16th. pic.twitter.com/OVKPCIh43H
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) April 10, 2025

The US regulator accused Ripple of selling XRP as a security without registering it in December 2020. This led to the rise of a massive legal battle that has caught the attention of the cryptocurrency markets.

The court has also previously ruled on the issue of institutional sales, finding that they were not in violation of the law. However, it decided that XRP was indeed sold on public exchanges in violation of the law.

SEC Approval Pending

In the motion, both parties continue to aver that they have an “agreement-in-principle.” This agreement relates to the SEC appeal filed by the SEC and Ripple’s cross-appeal from October 2023. The SEC commissioners must pass this resolution before it can go through. If approved, the SEC is required to report to the court on the progress of the case in 60 days.

Both Ripple and the SEC have intimated to the effect that the case was likely to be settled. The motion to stay the legal proceedings is the first legal procedure to signify the ultimate conclusion of settlement. The respondent failed to provide any reason to justify a delay in seeking to file the motion. This also embraces unsolved charges against the Ripple executives, and all legal proceedings are put on hold until the conclusion of the settlement.

Ripple and SEC Cooperation

According to the agreed conditions, the company is to be fined $50 million and will have to cooperate with the SEC. This is a major reduction from the original penalty of $125 million proposed by the SEC. This regulation, if passed, could drastically shape future cryptocurrency regulation for the United States as well as the legal classification of digital assets.

This announcement comes when Paul Atkins has been approved to be the new chair of the SEC. Atkins was approved by the Senate on April 9, and he has a pretty moderate approach to the regulation of digital assets. He is supposed to lead the SEC in a direction that will promote a better understanding of cryptocurrencies. Thus providing much-needed direction to the fast-developing landscape around cryptocurrencies.